Author: Talalian Arpi

BAKU WANTS TALKS ON KARABAKH TO CONTINUE IN CURRENT FORMAT

Interfax News Agency, Russia
June 10 2008

Azerbaijani Foreign Minister Elmar Mamedyarov does not rule
out a change in the format of the Nagorno- Karabakh settlement
talks."Everything depends on the talks. If we see that there is
a change to secure a breakthrough, then one can switch to another
format, if only the conflict is resolved," Mamedyarov told journalists
on Tuesday.

The minister confirmed Azerbaijan’s allegiance to the current format
of the talks within the framework of the OSCE Minsk Group.

"The talks have continued. The co-chairmen presented their
proposals. They are being discussed. The co-chairmen will then try
to unite these positions. We are in this process. I think that this
process should continue," Mamedyarov said.

The OSCE Minks Group brings together representatives of the United
States, Russia and France.

UPCOMING SENATE AND HOUSE HEARINGS TO FOCUS ON ARMENIA AND THE CAUCASUS
REGION

armradio.am
11.06.2008 10:28

The focus of two key Congressional committees will turn to the
Caucasus region next week as Senate Foreign Relations Committee
and House Foreign Affairs Committee members will, in an exercise of
their oversight responsibilities, have the opportunity to question
State Department officials on U.S. policy regarding Armenia and the
surrounding area, reported the Armenian National Committee of America
(ANCA).

Assistant Secretary of State for Europe Dan Fried will testify before
the House Foreign Affairs Committee on Wednesday June 18th regarding
U.S. policy toward the Caucasus region. Chairman Howard Berman (D-CA)
and his fellow Committee members will be focusing on a wide range of
issues including the ongoing blockade of Armenia, U.S. policy on the
Armenian Genocide, and foreign aid. Turkish Ambassador to the U.S. Nabi
Sensoy recently denied the existence of a Turkish blockade, arguing
that there are many Armenians who serve as "nannies" to Turkish
children. The World Bank estimates that Turkey and Azerbaijan’s
blockades of Armenia reduce Armenia’s GDP by up to 38% annually.

Rep. Adam Schiff (D-CA), along with Rep. George Radanovich (R-CA) and
Congressional Armenian Caucus Co-Chairs Frank Pallone, Jr. (D- NJ)
and Joe Knollenberg (R-MI) recently introduced the "End the Turkish
Blockade of Armenia" Bill (H.R. 6079), which calls upon Turkey to
end its blockade of Armenia and asks the U.S. Department of State to
report on its efforts towards this end.

On Thursday, June 19th, the Senate Foreign Relations Committee is
slated to hold a confirmation hearing for U.S. Ambassador to Armenia
nominee Marie Yovanovitch. On March 28, 2008, Pres. Bush nominated
Amb. Marie L.

Yovanovitch to serve as America’s next Ambassador to Armenia. The
ANCA has spoken to Committee members about the value of carefully
questioning Amb.

Yovanovitch on the many issues she will face as the U.S. envoy
in Yerevan, among them the recognition of the Armenian Genocide,
Turkey and Azerbaijan’s ongoing blockades of Armenia, and the need
for a balanced U.S. role in helping forge a democratic and peaceful
resolution to the Nagorno Karabagh conflict. These efforts have
been supported by extensive on-line outreach and a national postcard
campaign to key Senate Foreign Relations Committee members.

Today.Az, Azerbaijan
June 7 2008

Vafa Quluzade: "Russia will bother Azerbaijan with contacts with
Karabakh revenging for our pro-Western orientation"

07 June 2008 [11:19] – Today.Az

Day.Az interview with Vafa Quluzade, political scientist, former State
adviser of Azerbaijan on external political issues.

– Russian ambassador to Azerbaijan Vasili Istratov openly recognized
the fact of illegal conclusion of an agreement on cooperation of
Russia with one of the cities in Nagorno Karabakh. Before that, the
press published information hinting on Russian claims for two
Azerbaijani villages, bordering Russia. What is behind it:
incompetence of the Russian diplomat, if speaking about Istratov’s
statement or Russia’s intention to develop "Georgian script" in the
relation to Azerbaijan, trying to stake on separatism?

– This proves that Russia will toughen its attitude towards
Azerbaijan. Moscow is outraged by Azerbaijan’s continuation of its
Western orientation and strengthening of cooperation with NATO and
Moscow feels that this will end in our country’s accession to the
alliance.

Moreover, Russia is angry with Azerbaijan for agreeing to take part in
the Nabucco gas pipe project, which is bypassing Russia. As you know,
Russia offered Azerbaijan to give it all Azerbaijani gas, but
Azerbaijan rejected the offer. The President of Turkmenistan, who
refused to received head of Gazprom Miller, demonstrated that
Ashkhabad and Baku will participate in this project of gas
transportation bypassing Russia.

– What about the coming visit of new president of Russia D.Medvedev to
Azerbaijan on July 3-4, which is assessed by the head of the
Azerbaijani state as an indicator of high level of relations between
the two countries?

– This is why Medvedev wants to visit Azerbaijan and after it
Turkmenistan.

Russians will try to demonstrate its negative attitude to Azerbaijan
by using Nagorno Karabakh. They will establish cooperation between
Karabakh and different cities of Russia, hold visit of officials an
unofficial persons to Karabakh and threaten to Azerbaijan by
repetition of the Kosovo variant and recognition of Nagorno Karabakh’s
independence.

But I would say at once that Russia is not America. Russia will not be
able to provide independence of Nagorno Karabakh, as Americans did for
Kosovo, because Kosovo is striving for the European Union and NATO and
gets aid of the strongest super state-the United States, while Russia
itself is a developing country and it can not do anything for Armenia
or Nagorno Karabakh.

– But the relations between Azerbaijan and Russia are far from those,
we currently observe between Moscow and Georgia. Why does Russia need
new enemies by striving for recognition of the separatist regime in
Nagorno Karabakh?

– Russia will not do it. It will threaten to us, but it does not mean
that it will recognize it. Moscow will try to stake on this factor and
impose political pressure on the Azerbaijani leadership. But the
Azerbaijani leadership is too self-confident.

– So, nothing should be expected from the first meeting of the
President of Azerbaijan and Armenia, held in Saint-Petersburg.

– This meeting did not give any results, because both Armenia and
Nagorno Karabakh are fully under Russia’s dictate.

I have once warned Russia that by rejecting to settle this conflict in
1994-1995, to withdraw Armenian armed forces from the occupied lands
and return Azerbaijani refugees to their homes, Russia made a great
mistake, as it will lose too much with Americans’ appearance.

/Day.Az/

URL:

Representatives of ARF ‘Dashnaktsutyun’ thinks that Artsakh should
become model and example for all Armenians’

2008-06-07 14:58:00

ArmInfo. Members of ARF "Dashnaktsutyun" David Lokyan and Aghvan
Vardanyan are in Nagorno Karabakh with working visit.

As ArmInfo special correspondent in Stepanakert reports,
representatives of ARFD were received by NKR President Bako Sahakyan.
They discussed a number of issues of mutual interest. "ARFD has always
been nearby Artsakh in foreign political affairs, in particular, in
settlement of Nagorno Karabakh conflict", D. Lokyan told journalists
after the meeting with the NKR president. He said that the visit to
Stepanakert has been conditioned by a desire to specify what the party
can do in "improvement of the situation in the NKR and opposition to
the world rough challenges with respect to Artsakh". "We should create
such an atmosphere in Armenia, Karabakh and the whole Diaspora that
will favour this process and lead to success", D. Lokyan said. For his
part, A. Vardanyan marked commonness of the goals of different part of
the Armenians. "The goal is one – a strong and powerful Armenia
together with Artsakh.

We should have an organized, strong Armenian community all over the
world for our people be able to show itself in a best way and become a
notable factor in the world. This is the purpose of "Dashnaktsutyun"
and, thank God, today, our approaches both in Armenia and in Karabakh
coincide almost by 100%", A. Vardanyan said.

ARFD representatives also expressed hope that a progress will be
shortly marked as regards cooperation on the main problem – ‘Hay Dat’
(‘Armenian question’). The party representatives think that "Artsakh
should become a model and example for all the Armenians".

BIRTH-RATE INCREASES IN NAGORNO-KARABAKH

DeFacto Agency
June 5 2008
Armenia

YEREVAN, 05.06.08. DE FACTO. 946 children were born in the
Nagorno-Karabakh Republic in January-May 2008, which is 12, 5 %
more than the level of the same period 2007.

According to the information DE FACTO received at the NKR National
Statistic Service, for the same period death-rate increased by 12,
8 % as compared with the same period last year.

Natural increment of population in January-May 2008 made 329 people,
thus increasing by 11, 9 % as compared with analogous period last
year. For the first five months of the current year mechanical
increment of population made 286 people.

CHARLES AZNAVOUR IN ARMENIA

A1+
[02:49 pm] 03 June, 2008

Today President Serzh Sargssian hosted world famous singer Charles
Aznavour and his impresario Levon Sayan. This time our renowned
compatriot has arrived in Armenia with his family.

"I experience great joy every time I arrive in Armenia," said Charles
Aznavour and noted with appreciation that now they have a family
member from Armenia, his grandchild’s wife is of Armenian origin.

Welcoming Charles Aznavour, the President expressed confidence that
our great compatriot will enjoy his visit full of pleasant moments.

Serzh Sargssian appreciated Aznavour’s precious service in presenting
Armenia to the world with his art and activity. "Every Armenian is
proud to have a compatriot like you and the foreign attitude towards
Armenia is partly shaped owing to you," noted the President.

The celebrated singer shared his impressions of the capital, saying
he is pleasantly surprised at the changes.

During the warm and sincere conversation President Sargssian and
Charles Aznavour discussed the life in Armenia. Among the urgent issues
Aznavour underlined the development of rural areas. Noting that equal
territorial development is among the Government’s priorities, Serzh
Sargssian highlighted the serious steps undertaken towards solving
the issue. He also revealed the attempts made to distribute part of
the accumulated resources in the regions.

RUSSIAN AMBASSADOR SUPPORTS JOINT RESTORATION OF RAIL TRAFFIC VIA ABKHAZIA

Interfax News Agency
June 2 2008
Russia

Russian Ambassador to Georgia Vyacheslav Kovalenko has called for the
soonest resumption of the activity of the quadripartite working group,
which considers railroad traffic across Abkhazia.

"That will meet the interests of Georgia, Abkhazia and the entire
South Caucasus," he told the media in Tbilisi on Monday.

The sides were actively discussing a possible consortium of Georgia,
Abkhazia, Armenia and Russia two years ago. The consortium was expected
to resume railroad traffic across Abkhazia and thus directly connect
Georgia and Armenia to Russia.

"Russia and Abkhazia are not responsible for the delay of this
project," the diplomat said.

"We should resume the activity of the commission as soon as possible,"
he said.

FOREIGN INVESTMENT, EXTERNAL DEBT POST STRONG GROWTH IN ARMENIA DURING Q1
Venla Sipila

World Markets Research Center
Global Insight
June 3, 2008

According to data from the Armenian Statistical Service, foreign
investment attracted by the country (excluding government bodies
and the banking sector) totalled $15US.9 million in the first
quarter of the year, increasing by 20.5% year-on-year (y/y), ARKA
News reports. This growth brought the cumulative amount of foreign
investment to $165US.9 million. Specifically, growth of 2.3% y/y
over the first quarter resulted in the total amount of FDI reaching
$91US.7 million.

The share of FDI of total foreign investment thus stood at some
55%, falling compared with the year-ago ratio of around 65%. The
communication sector attracted nearly 43% of total foreign investment
and some 32% of FDI, while also the utility and air transport fields
fared well in this respect. Russia remained by far the largest investor
country. Further, it was reported that Armenia’s total foreign debt
at the end of the first quarter reached $1US.55 billion, having risen
by 26.9% y/y. With a share of 88.6%, government debt forms the major
part of Armenia’s external obligations. New loans received over the
first quarter amounted to $42US.7 million, while Armenia repaid
$8US.9 million of debt, and interest payments amounted to $2US.5
million. International financial organisations are Armenia’s main
creditors, having provided a share of 82.5% of the country’s external
debt as of end of the first quarter. Notably, debt to the World
Bank rose by 21.1% y/y over the first quarter, reaching some $1US.05
billion. Germany and Japan are the most important bilateral creditors.

Significance:Good progress with economic reforms has secured
unproblematic access to soft loans from international financial
institutions for Armenia. However, Armenia’s creditworthiness is still
characterised by high payments risk. Indeed, its total debt burden is
relatively heavy, especially compared with its still rather weak export
revenue earnings capacity. The current-account deficit remains deep
and Armenia’s reliance on private transfers and remittances leaves the
country vulnerable to external shocks. Investment to Armenia is also
restricted by, for example, geopolitical risks. Nevertheless, debt
servicing is not likely to pose any difficulties for the sovereign in
the medium term. Importantly, even though they only form a relatively
modest part of total foreign investment, FDI inflows finance a large
part of the deep external deficit, reducing the need to increase
foreign borrowing. However, in order to achieve continued improvement
in its sovereign creditworthiness in the medium-to-long term, Armenia
needs to progress further in economic restructuring to diversify
its economy, especially the production base of its export sector,
and to strengthen its export earnings capacity.

SAFAR ABIYEV GOES ON THREATENING

AZG Armenian Daily
04/06/2008

Armenia-Azerbaijan

Azerbaijani Defense Minisater Safar Abiyev received OSCE Minsk Group
Co-Chair Matthew Bryza. APA reports that the officials discussed the
situation about the Nagorno-Karabakh conflcit.

On the meeting Abiyev declared that "Unless Armenia withdraws all
its armed forces from the occupied territories, the situation may
get out of control"

PURPOSE OF PRESIDENTIAL MEETING IS TO GAUGE WHETHER THE OTHER SIDE IS SERIOUS ABOUT CONTINUING TALKS

PanARMENIAN.Net
03.06.2008 14:41 GMT+04:00

/PanARMENIAN.Net/ OSCE Minsk Group U.S. Co-chair Matthew J. Bryza
commented on the upcoming meeting of the Armenian and Azerbaijani
Presidents.

"The primary purpose of the meeting is for the two leaders to become
acquainted with each other and for each to gauge whether the other side
is serious about continuing the negotiations on the basis of previous
understandings," Ambassador Bryza told a PanARMENIAN.Net reporter.

"There is no set agenda for the meeting. If the Presidents wish,
they could even discuss the details of the Basic Principles. However,
if they do not choose to go into such details, we hope this meeting
will at least pave the way for a resumption of the talks on these
principles," he said.

Serzh Sargsyan and Ilham Aliyev are scheduled to meet in Saint
Petersburg on June 6 in the framework of an international economic
conference.